Highly increased competition in the global business environment is compelling operations managers to put greater efforts into streamlining their operations. Operations managers can no longer afford to maintain a system in which the manufacturing system operates in isolation from other systems. Therefore, operations managers should also manage the structure of their organization, not merely its operations.
The term structure has a broad perspective and includes issues like the number of plants, size of plants and their location, plant capacity, choices of equipment and process technology, production control, work force management, etc. The design of production processes is an important part of the structure of operations. This chapter discusses the methodologies involved in planning and designing production processes.
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